Professional Documents
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Suman Saha
Lecturer
Independent University Bangladesh
Market Analysis of ..
PEPSOD ENT
We are:- Group
Group No. 06
SL no.
1 2 3 4 5
Roll no.
1120016 1120144 1120643 1120703 1120126
Name
Zumrat Hossain Shah Paran Mohammad Ziaul Hoque Bhuiyan Lotfunnaher Mily Saima Khanom Chaina Faria Hossain
Market Description:
Nescafe was launched in Bangladesh in 1998 for the very first time. Nescafes Market consists of students, young adults and professionals living in urban areas. Not only are young adults being exposed to coffee in cafs, students (including young adults who fall in this category) and professionals are also exposed to Nescafe through strategic placement programs. This is done by making Nescafe available in school, university and workplace cafeterias.
Market Description:
Cont.
Nestle is segmenting and targeting the Bangladeshi consumer market based on six categories as follows:
Demographic Segmentation Consumption pattern Socio-Economic factors Brand loyalty patterns Perceptual factors Cultural factors
Product Review:
Brazilian Coffee meets Swiss science, that is how Nescafe was born. An evaluation of Nescafe (in general) is given below: Made from Brazilian coffee beans Rich aroma Rich in texture Smooth in taste Practically free of calories (2 kcals per cup other than Nescafe: 3 in 1 which is as high as 5 kcals) Made from all natural ingredients (other than Nescafe: 3 in 1) Globally recognized brand.
Competitive Review:
Nescafe has very little competition as it is the market leader and is practically running a monopoly in Bangladesh with more than 80 percent of the market share and increasing. Competitors like Bru, Valentino and a few others account for roughly 15 percent of the market share cumulatively
Distribution Review:
Nescafe is to be distributed to most of urban Bangladesh concentrating mostly on the densely populated cities such as Dhaka, Chittagong and many more through a wide network of wholesalers and retailers. The major retailers in the channel are as follows: General stores Supermarkets Shopping Malls and Superstores
SWOT Analysis:
Strength:
Highly experienced and competent management team Globally recognized brand image Immense resources
Weakness:
Not very flexible in terms of products
Opportunity:
No other relatively similar sized competitor in the market.
Threats:
Unstable political environment.
Market open to new competitors entering.
Marketing Strategy:
Nestle has tried to differentiate Nescafe from all its competitors using both product positioning and product differentiation techniques.
Marketing Research
Market surveys and focus groups are a major source for information necessary to evaluate marketing programs and figure out future marketing strategies and plans. Stating from brand awareness to consumer satisfaction, Nestle carries out a wide range of marketing research activities. All future marketing activities are determined on the basis of the results of these research findings.
Action Programs:
On-going and up-coming marketing programs include:
Get Set Rock! A TV show sponsored by Nescafe Nescafe My First Cup campaign Nescafe Valentines Day Special A small newspaper supplement sponsored by Nescafe which comes with The Independent on the 14th of February, each year. It has love letters written by the individuals from all over the country to their loved ones. And many more.
Budget:
Actually, they dont need to target 16 crore people of our country. If they target only 1 or 2 crore consumers and if they could sell maximum 50 to 60 lakhs product in a month, they can make a huge profit with the sales.
They are offering a 200gm toothpaste with a value of 56.00 taka (whole sale price). Variable cost for making a single product is 34.75 taka (including packaging, Commissions, etc.) and their fixed cost is 1.65 crore taka (including salaries, advertising, insurance, other expenses, etc.) for a single month.
Therefore,
Selling price Variable cost Fixed cost = = = 56.00 BDT. 34.75 BDT per unit. 1, 65, 00,000 BDT.
So, if they can sell more than 7, 76,471 products in every month they will meet the profit line.
For a basic assumption if they sell 50 lakhs product, then their profit will be:
Controls:
All of the marketing activities are not going to help reach the eventual goal if proper control procedures are not in place. Nestle has strict control policies. One element which is strictly controlled is the quality of products. This is ensured by Total Quality Management (TQM). TQM is an integrated philosophy of management for continuously improving the quality of products or processes. TQM requires the involvement of management, workforce, suppliers, distributors and customers to exceed the expectations of consumers.
Also, actual figures are compared to budgeted figures in fixed intervals to ensure that any discrepancy is found and taken care of. This ensures that objectives will be meet.